Revisions to Fees Payable by Regulated Mutual Funds and Regulated Private Funds

Further to the Cayman Islands Monetary Authority’s (the “Authority”) industry notice dated 31 December 2025, and to assist fund industry stakeholders in better understanding the implications of the fee revisions recently introduced by the Cayman Islands Government, please refer to the following information:

Amendments to Fee Amounts

Effective 1 January 2026, the Annual Return Fee applicable to funds and/or sub-funds and/or alternative investment vehicles (”AIV”) regulated under the Mutual Funds Act (as revised) or under the Private Funds Act (as revised) has been updated.

The following revised annual and sub-fund fee amounts now apply:

• The existing Annual Fee for registered funds has increased from $3,675 to $4,125.
• The existing Annual Fee for Master Funds has increased from $2,625 to $3,075.
• The existing sub-fund fee for registered mutual funds has increased from $300 to $750 per sub-fund.
• The existing sub-fund or AIV fee for registered private funds has increased from $300 to $525 per sub-fund or AIV.

Annual Return Fees relating to financial years ending on or before 31 December 2025 will continue to be assessed at the pre-revised rates (i.e., $300 or $150, as applicable).

For the 2026 calendar year, the fees will appear as separate payments to clearly show the breakdown between the base annual fee and the incremental fee increase, due to timing differences between the release of the Annual Fee on the Authority’s Regulatory Enhanced Electronic Forms Submission (“REEFS”) portal and the subsequent Government approval of the revised Annual Fee. These details are now reflected on the REEFS portal under the respective account profiles. Effective 1 January 2027, the fees will appear as a single consolidated payment on REEFS.

Timing and Application of Fees

Under the revised framework, the deadline for annual fee remains unchanged and continues to fall on 15 January each year. Sub-fund/AIV fees remain separate from the annual fee and must continue to be paid in accordance with current procedures.

Fees Already Remitted

Entities are reminded that the statutory deadline for remittance of the pre-revised annual fee was due on 15 January 2026. Regulated funds that have already submitted payment should ensure that the full revised annual fee ($4,125 or $3,075, as applicable), together with any applicable sub-fund/ AIV fees, has been paid.

Where the amount already remitted is less than the applicable fee obligation under the revised framework, funds are expected to settle the outstanding balance by 15 February 2026.

Penalty Arrangements

The Authority advises that no penalties will be assessed on the unpaid incremental fee increases until after 15 February 2026. Failure to remit all applicable fees in full by that date will result in non-compliance and the assessment of penalties in accordance with the relevant legislation.

Further Information

Entities seeking clarification regarding the revised fee framework, specifically for investments-related fees, may refer to the Authority’s fee schedule or email ContactInvestments@cima.ky. Additional guidance will be issued as required.